WESTCHESTER, Ill., August 1, 2017 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today reported results for the second quarter 2017. The results reported in accordance with U.S. generally accepted accounting principles ("GAAP") for 2017 and 2016 include items which are excluded from the non-GAAP financial measures which we present*.

"We continue to deliver shareholder value with another strong quarter, including solid operating income and earnings per share growth. Good operating efficiency, the impact of acquisitions, and higher specialty volumes more than offset headwinds in South America," said Ilene Gordon, chairman, president and chief executive officer. "Operating income in North America reached record levels, but was lower in South America due to macroeconomic headwinds and the temporary interruption of manufacturing activities in Argentina associated with the implementation of a new labor agreement."

"As in the past, our growth strategy and continuous improvement programs drove margin expansion. The integrations of TIC Gums, Shandong Huanong Specialty Corn, and the Sun Flour Industry rice business are progressing as planned. We have completed an important organizational restructuring of our Argentina business and we will continue our disciplined approach to cost management. As we continue to execute our strategy, we expect another strong year and reiterate our anticipated 2017 adjusted EPS guidance in the range of $7.50 to $7.80," Gordon added.

*Adjusted Diluted Earnings Per Share ("adjusted EPS"), adjusted operating income and adjusted effective income tax rate are non-GAAP financial measures. See section II of the Supplemental Financial Information entitled "Non-GAAP Information" following the Condensed Consolidated Financial Statements included in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures.

Diluted Earnings Per Share (EPS)

2Q16

2Q17

YTD16

YTD17

Reported EPS

$1.58

$1.78

$3.36

$3.46

Acquisition/Integration Costs

-

$0.04

$0.01

$0.09

Impairment/Restructuring Costs

$0.14

$0.07

$0.14

$0.22

Adjusted EPS**

$1.73

$1.89

$3.51

$3.77

**Totals may not foot due to rounding

Estimated factors affecting change in adjusted EPS

2Q17

YTD17

Margin

(0.01)

(0.13)

Volume

0.08

0.26

Foreign exchange

0.01

0.04

Other income/(expense)

0.01

0.02

Total operating items

0.09

0.19

Financing costs

(0.01)

(0.07)

Shares outstanding

0.02

0.02

Tax rate

0.06

0.12

Non-controlling interest

-

-

Total non-operating items

0.07

0.07

Total items affecting adjusted EPS

0.16

0.26

Financial Highlights

At June 30, 2017, total debt and cash and short-term investments were $1.95 billion and $454 million, respectively, versus $1.96 billion and $516 million, respectively, at December 31, 2016. Cash and short-term investments were lower primarily driven by stock repurchases.

During the second quarter of 2017, net financing costs were $20 million, or $1 million higher than the year-ago period, due to modestly higher interest rates and gross debt compared to the same period in 2016.

For the second quarter of 2017, reported and adjusted effective tax rates were 30.4 percent and 29.9 percent, respectively, compared to reported and adjusted effective tax rates of 32.8 percent and 32.0 percent, respectively, in the year-ago period. The lower rates were largely driven by appreciation of the Mexican peso during the quarter and resultant valuation of U.S. dollar-denominated balances in Mexico, partially offset by a valuation allowance on the net deferred tax assets of a foreign subsidiary.

Capital expenditures were $144 million for the first half of 2017, up $19 million from the year-ago period.

Business Review

Total Ingredion

$ in millions

2016 Net sales

FX Impact

Volume

Price/mix

2017 Net sales

% change

Second quarter

1,455

2

18

-18

1,457

0%

Year-to-date

2,815

50

94

-49

2,910

3%

Net Sales

Second quarter net sales were flat compared to the year-ago period. Acquisition and specialty volume growth were offset by less favorable price/mix due to the pass through of lower raw material cost.

Year-to-date net sales were up as a result of acquisition-, specialty- and core-related volume growth and changes in foreign currency exchange rates. These factors were partially offset by less favorable price/mix due to the pass through of lower raw material cost.

Operating income

Second quarter reported and adjusted operating income were $211 million and $221 million, respectively. These were six percent and five percent increases, respectively, compared to $198 million of reported operating income and $211 million of adjusted operating income in the second quarter of 2016. The increases in reported and adjusted operating income were primarily due to margin expansion driven by operational efficiencies as well as acquisition- and organic specialty-related volume growth. These positives were partially offset by difficult macroeconomic conditions in South America, the interruption of manufacturing activities in Argentina and resulting temporary higher costs.

Year-to-date 2017 reported and adjusted operating income were $406 million and $433 million, respectively. These were two percent and five percent increases, respectively, compared to $398 million of reported operating income and $412 million of adjusted operating income year-to-date 2016. The increases in reported and adjusted operating income were primarily due to acquisition-, specialty- and core-related volume growth. These positives were partially offset by difficult macroeconomic conditions in South America, the interruption of manufacturing activities in Argentina and resulting temporary higher costs.

Second quarter reported operating income was lower than adjusted operating income by $10 million. Restructuring actions in Argentina were $6 million and acquisition and integration costs associated with TIC Gums were $4 million.

Year-to-date 2017 reported operating income was lower than adjusted operating income by $27 million. Restructuring actions in Argentina were $17 million and acquisition and integration costs associated with TIC Gums were $9 million.

North America

$ in millions

2016 Net sales

FX Impact

Volume

Price/mix

2017 Net sales

% change

Second quarter

895

-4

15

-1

905

1%

Year-to-date

1,735

-

62

-11

1,786

3%

Operating income

Second quarter operating income increased from $160 million to $181 million while year-to-date operating income increased from $309 million to $341 million. In both periods, margin expansion driven by operational efficiencies and lapping plant maintenance from the prior year as well as volume growth from TIC Gums and specialty ingredients accounted for the increase.

South America

$ in millions

2016 Net sales

FX Impact

Volume

Price/mix

2017 Net sales

% change

Second quarter

240

8

-11

-9

228

-5%

Year-to-date

455

54

-8

-18

483

6%

Operating income

Operating income in the second quarter was $4 million, down $10 million from a year ago. Year-to-date operating income was $18 million, down $13 million from a year ago. In both periods, the decrease was largely a result of Argentina's difficult macroeconomic conditions, the interruption of manufacturing activities in Argentina and resulting temporary higher costs.

Asia Pacific

$ in millions

2016 Net sales

FX Impact

Volume

Price/mix

2017 Net sales

% change

Second quarter

180

2

18

-13

187

4%

Year-to-date

349

5

37

-25

366

5%

Operating income

Second quarter operating income was $29 million, down less than $1 million from a year ago. Less favorable price/mix due to core customer mix diversification, more than offset volume growth.

Year-to-date operating income was $59 million, up $1 million from a year ago. The increase was largely due to volume growth partially offset by less favorable price/mix due to core customer mix diversification.

Europe, Middle East, Africa (EMEA)

$ in millions

2016 Net sales

FX Impact

Volume

Price/mix

2017 Net sales

% change

Second quarter

140

-3

-4

4

137

-2%

Year-to-date

276

-8

2

5

275

-

Operating income

Second quarter operating income was $29 million, flat to a year ago. Margin expansion offset foreign exchange and volume impacts due to Ramadan timing.

Year-to-date operating income was $57 million, up $2 million from a year ago. Volume growth more than offset foreign exchange impacts and higher input costs in Europe.

2017 Guidance

2017 adjusted EPS, excluding acquisition-related, integration, and restructuring costs, as well as any potential impairment costs, is expected to be in the range of $7.50 to $7.80 compared to adjusted EPS of $7.13 in 2016. The full-year guidance assumes, compared to last year: overall improvement in North America, Asia Pacific, and EMEA; South America flat to down; an adjusted effective tax rate of approximately 29 to 31 percent; and continued trade up in our portfolio, including higher-value specialty ingredients, leading to margin expansion.

In 2017, cash generated by operations is now expected to be in the range of $750 to $800 million, slightly lower than our previous estimate, due to the organizational restructuring actions in Argentina and the launch of a finance transformation project. Capital expenditures are anticipated to be between $300 and $325 million.

Conference Call and WebcastIngredion will conduct a conference call today at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) to be hosted by Ilene Gordon, chairman, president and chief executive officer, and James Gray, executive vice president and chief financial officer.

The call will be webcast in real time, and will include a visual presentation accessible through the Ingredion website at www.ingredion.com. The presentation will be available to download a few hours prior to the start of the call. A replay of the webcast will be available for a limited time thereafter at www.ingredion.com.

ABOUT THE COMPANYIngredion Incorporated (NYSE: INGR) is a leading global ingredient solutions provider. We turn grains, fruits, vegetables and other plant materials into value-added ingredients and biomaterial solutions for the food, beverage, paper and corrugating, brewing and other industries. Serving customers in over 100 countries, our ingredients make crackers crunchy, yogurts creamy, candy sweet, paper stronger and add fiber to nutrition bars. Visit www.ingredion.com to learn more.

Forward-Looking Statements This news release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends these forward-looking statements to be covered by the safe harbor provisions for such statements.

Forward-looking statements include, among other things, any statements regarding the Company's prospects or future financial condition, earnings, revenues, tax rates, capital expenditures, expenses or other financial items, any statements concerning the Company's prospects or future operations, including management's plans or strategies and objectives therefor and any assumptions, expectations or beliefs underlying the foregoing.

These statements can sometimes be identified by the use of forward looking words such as "may," "will," "should," "anticipate," "assume", "believe," "plan," "project," "estimate," "expect," "intend," "continue," "pro forma," "forecast," "outlook," "propels," "opportunity," "potential" or other similar expressions or the negative thereof. All statements other than statements of historical facts in this release or referred to in this release are "forward-looking statements."

These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and are beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, stockholders are cautioned that no assurance can be given that our expectations will prove correct.

Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various factors, including the effects of global economic conditions, including, particularly, continuation or worsening of the current economic, currency and political conditions in South America and economic conditions in Europe, and their impact on our sales volumes and pricing of our products, our ability to collect our receivables from customers and our ability to raise funds at reasonable rates; fluctuations in worldwide markets for corn and other commodities, and the associated risks of hedging against such fluctuations; fluctuations in the markets and prices for our co-products, particularly corn oil; fluctuations in aggregate industry supply and market demand; the behavior of financial markets, including foreign currency fluctuations and fluctuations in interest and exchange rates; volatility and turmoil in the capital markets; the commercial and consumer credit environment; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products; future financial performance of major industries which we serve, including, without limitation, the food and beverage, paper, corrugated, and brewing industries; energy costs and availability, freight and shipping costs, and changes in regulatory controls regarding quotas; tariffs, duties, taxes and income tax rates; particularly United States tax reform; operating difficulties; availability of raw materials, including potato starch, tapioca, gum arabic and the specific varieties of corn upon which our products are based; our ability to develop new products and a services at a rate or of a quality sufficient to meet expectations; energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses; our ability to achieve budgets and to realize expected synergies; our ability to complete planned maintenance and investment projects successfully and on budget; labor disputes; genetic and biotechnology issues; changing consumption preferences including those relating to high fructose corn syrup; increased competitive and/or customer pressure in the corn-refining industry; and the outbreak or continuation of serious communicable disease or hostilities including acts of terrorism. Factors relating to the acquisition of TIC Gums that could cause actual results and developments to differ from expectations include: the anticipated benefits of the acquisition, including synergies, may not be realized; and the integration of TIC Gum's operations with those of Ingredion may be materially delayed or may be more costly or difficult than expected.

Our forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2016 and subsequent reports on Forms 10-Q and 8-K.

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.Source: Ingredion Incorporated via Globenewswire